Renting Out Your Granny Flat

You may be wondering if you should buy a property with a granny flat included. Will it be wasted space? Maybe you are thinking it is not necessary for your family. Or you don't want to have to worry about the admin of filling your granny flat with a tenant. 

According to Private Property, there are three main advantages to renting out your granny flat: 

1. Passive Income
2. Security
3. Medical Emergencies

It is a huge benefit to have an extra pair of hands on the property to call someone in case of emergencies, or have peace of mind knowing you are not the only one at home because your tenant is there. But generating a passive income from renting out your granny flat is a huge benefit, especially for retirees. 

Why is passive income so important? Just a few reasons could be to improve your financial stability, reduce stress and improve your financial consistency.

More and more forty to fifty year olds are realising that if they want to maintain their lifestyle when retired, their retirement annuity may not be enough. Many opt to invest in stocks, others dabble in crypto currency, and then you get those who prefer property. Property is tangible and generally boasts an incredible increase in value over time. Investing in property to rent out or even sell again in a few years time can really improve your financial situation and contribute towards financial consistency and stability, especially if you consider renting out your granny flat.

By now you may be asking, "Where do I begin?" 

Plans. If you are wanting to convert a space into a granny flat, plans have to be drawn up and approved before any renovations begin. If you already have a granny flat, you may consider revamping it. A coat of paint can go a long way in freshening up a space, but it might be time to rip up the carpets and lay down new flooring, or replace the kitchen cupboards and add some modern hardware. 

Next, you'll want to get a tenant in to start earning that passive income. We suggest using a real estate agency, such as Louw & Coetzee Properties. The benefits of using a rental agent are endless:

• The agency will handle all marketing
• The rental agent will handle viewings
• They will handle all screenings & background checks to place the right tenant
• They handle all communication with the tenant
• All payments are handled by the agency

All you have to do, pay a 10% commission each month so you can carry on without the hassle of all the admin! For most, that is a pretty great deal. 

Lastly, reap the benefits of your income generating flatlet! 

Next: Why is a Sole Mandate Beneficial?

Written by: Hayley Kellerman